Chapter II

RIGHTS AND CONDITIONS OF MEMBERSHIP

Art. 241. Rights and conditions of membership in a labor organization. The following are the
1.

rights and conditions of membership in a labor organization:

No arbitrary or excessive initiation fees shall be required of the members of a legitimate
labor organization nor shall arbitrary, excessive or oppressive fine and forfeiture be imposed;

2.

The members shall be entitled to full and detailed reports from their officers and
representatives of all financial transactions as provided for in the constitution and by-laws of the
organization;

3.

The members shall directly elect their officers, including those of the national union or
federation, to which they or their union is affiliated, by secret ballot at intervals of five (5) years.
No qualification requirements for candidacy to any position shall be imposed other than
membership in good standing in subject labor organization. The secretary or any other responsible
union officer shall furnish the Secretary of Labor and Employment with a list of the newly-elected
officers, together with the appointive officers or agents who are entrusted with the handling of
funds, within thirty (30) calendar days after the election of officers or from the occurrence of any
change in the list of officers of the labor organization; (As amended by Section 16, Republic Act No.
6715, March 21, 1989)

4.

The members shall determine by secret ballot, after due deliberation, any question of
major policy affecting the entire membership of the organization, unless the nature of the
organization or force majeure renders such secret ballot impractical, in which case, the board of
directors of the organization may make the decision in behalf of the general membership;

5.

No labor organization shall knowingly admit as members or continue in membership any

individual who belongs to a subversive organization or who is engaged directly or indirectly in any
subversive activity;

6.

No person who has been convicted of a crime involving moral turpitude shall be eligible for
election as a union officer or for appointment to any position in the union;

7.

No officer, agent or member of a labor organization shall collect any fees, dues, or other
contributions in its behalf or make any disbursement of its money or funds unless he is duly
authorized pursuant to its constitution and by-laws;

8.

Every payment of fees, dues or other contributions by a member shall be evidenced by a

receipt signed by the officer or agent making the collection and entered into the record of the
organization to be kept and maintained for the purpose;

9.

The funds of the organization shall not be applied for any purpose or object other than
those expressly provided by its constitution and by-laws or those expressly authorized by written
resolution adopted by the majority of the members at a general meeting duly called for the
purpose;

10.

Every income or revenue of the organization shall be evidenced by a record showing its
source, and every expenditure of its funds shall be evidenced by a receipt from the person to
whom the payment is made, which shall state the date, place and purpose of such payment. Such
record or receipt shall form part of the financial records of the organization.
Any action involving the funds of the organization shall prescribe after three (3) years from the
date of submission of the annual financial report to the Department of Labor and Employment or
from the date the same should have been submitted as required by law, whichever comes earlier:
Provided, That this provision shall apply only to a legitimate labor organization which has
submitted the financial report requirements under this Code: Provided, further, that failure of any
labor organization to comply with the periodic financial reports required by law and such rules and
regulations promulgated thereunder six (6) months after the effectivity of this Act shall
automatically result in the cancellation of union registration of such labor organization; (As
amended by Section 16, Republic Act No. 6715, March 21, 1989)

11.

The officers of any labor organization shall not be paid any compensation other than the
salaries and expenses due to their positions as specifically provided for in its constitution and bylaws, or in a written resolution duly authorized by a majority of all the members at a general
membership meeting duly called for the purpose. The minutes of the meeting and the list of
participants and ballots cast shall be subject to inspection by the Secretary of Labor or his duly
authorized representatives. Any irregularities in the approval of the resolutions shall be a ground
for impeachment or expulsion from the organization;

12.

The treasurer of any labor organization and every officer thereof who is responsible for the
account of such organization or for the collection, management, disbursement, custody or control
of the funds, moneys and other properties of the organization, shall render to the organization and
to its members a true and correct account of all moneys received and paid by him since he
assumed office or since the last day on which he rendered such account, and of all bonds,
securities and other properties of the organization entrusted to his custody or under his control.
The rendering of such account shall be made:

1.
2.

3.

At least once a year within thirty (30) days after the close of its fiscal year;
At such other times as may be required by a resolution of the majority of the
members of the organization; and
Upon vacating his office.
The account shall be duly audited and verified by affidavit and a copy thereof shall be furnished
the Secretary of Labor.

13.

The books of accounts and other records of the financial activities of any labor organization
shall be open to inspection by any officer or member thereof during office hours;

14.

No special assessment or other extraordinary fees may be levied upon the members of a
labor organization unless authorized by a written resolution of a majority of all the members in a
general membership meeting duly called for the purpose. The secretary of the organization shall
record the minutes of the meeting including the list of all members present, the votes cast, the

purpose of the special assessment or fees and the recipient of such assessment or fees. The record
shall be attested to by the president.
15.

Other than for mandatory activities under the Code, no special assessments, attorneys
fees, negotiation fees or any other extraordinary fees may be checked off from any amount due to
an employee without an individual written authorization duly signed by the employee. The
authorization should specifically state the amount, purpose and beneficiary of the deduction; and

16.

It shall be the duty of any labor organization and its officers to inform its members on the
provisions of its constitution and by-laws, collective bargaining agreement, the prevailing labor
relations system and all their rights and obligations under existing labor laws.
For this purpose, registered labor organizations may assess reasonable dues to finance labor relations seminars and
other labor education activities.
Any violation of the above rights and conditions of membership shall be a ground for cancellation of union registration
or expulsion of officers from office, whichever is appropriate. At least thirty percent (30%) of the members of a union
or any member or members specially concerned may report such violation to the Bureau. The Bureau shall have the
power to hear and decide any reported violation to mete the appropriate penalty.
Criminal and civil liabilities arising from violations of above rights and conditions of membership shall continue to be
under the jurisdiction of ordinary courts.
Chapter III
RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS

1.

Art. 242. Rights of legitimate labor organizations. A legitimate labor organization shall have the right:
To act as the representative of its members for the purpose of collective bargaining;

2.

To be certified as the exclusive representative of all the employees in an appropriate

bargaining unit for purposes of collective bargaining;

3.

To be furnished by the employer, upon written request, with its annual audited financial
statements, including the balance sheet and the profit and loss statement, within thirty (30)
calendar days from the date of receipt of the request, after the union has been duly recognized by
the employer or certified as the sole and exclusive bargaining representative of the employees in
the bargaining unit, or within sixty (60) calendar days before the expiration of the existing
collective bargaining agreement, or during the collective bargaining negotiation;

4.

To own property, real or personal, for the use and benefit of the labor organization and its
members;

5.
6.

To sue and be sued in its registered name; and

To undertake all other activities designed to benefit the organization and its members,
including cooperative, housing, welfare and other projects not contrary to law.
Notwithstanding any provision of a general or special law to the contrary, the income and the properties of legitimate
labor organizations, including grants, endowments, gifts, donations and contributions they may receive from fraternal
and similar organizations, local or foreign, which are actually, directly and exclusively used for their lawful purposes,
shall be free from taxes, duties and other assessments. The exemptions provided herein may be withdrawn only by a

special law expressly repealing this provision. (As amended by Section 17, Republic Act No. 6715, March 21,
1989)